The Bloomberg Dollar Index fell on Wednesday, while the Japanese yen jumped, after Japan's Finance Minister Shunichi Suzuki stated that appropriate action would be taken when necessary and reiterated deep concern over the yen's sudden weakness.
The Bloomberg Dollar Index declined by 0.1%.
U.S. retail sales in November recorded their largest increase since July, primarily driven by a rebound in auto sales and robust holiday shopping season performance.
"The dollar's weakness does not appear to be universal," said Aroop Chatterjee, a strategist at Wells Fargo. "Improving U.S. economic data, the Federal Reserve's steady stance, and higher U.S. interest rates continue to support the dollar."
The U.S. Supreme Court did not issue a ruling on the Trump tariff case, with the next potential window for a decision possibly arriving in a week.
USD/JPY fell 0.4% to 158.59, after having climbed to an intraday high of 159.45.
Japan's Finance Minister Shunichi Suzuki stated that no options are off the table, hinting that direct market intervention is one of the viable options.
"The policy contradiction is obvious, which is why everyone is bearish on the yen right now, but that doesn't rule out a quick rebound to 155 if they intervene," said Brent Donnelly, President of Spectra Markets.
The Danish krone rose against the euro after Denmark's Foreign Minister stated that an agreement had been reached with the United States to establish a high-level working group on Greenland.
EUR/DKK fell to 7.4710, while USD/DKK briefly erased its losses for the day following the news but subsequently moved lower again.
"Discussions about forming a working group should be seen as constructive compared to some of the more confrontational rhetoric we've heard," said Alex Cohen, a strategist at Bank of America.
EUR/USD held largely steady around 1.1645.
GBP/USD rose 0.1% to 1.3435.
AUD/USD gained less than 0.1% to 0.6685.
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